Impact of Digital Transformation on the Skills and Workforce Requirements of the Nigerian Insurance Industry

Insight from the Nigerian Insurance Industry

Abstract

Digital transformation is profoundly disrupting the global insurance sector, requiring insurers to digitally transform their operations, systems, and workforce capabilities to remain competitive. Emerging technologies such as artificial intelligence, machine learning, big data analytics, cloud computing, the Internet of Things, and blockchain are enabling new data-driven processes, innovative products and services, and superior customer experiences. This study investigated the impact of digital transformation on the skills and workforce requirements of the Nigerian insurance industry. A survey was conducted of 250 insurance professionals in Lagos State using simple random sampling. The survey assessed perceptions of the importance of various digital skills as well as the industry's current readiness in terms of workforce skills, training investment, and talent attraction/retention. Chi-square and t-test analyses were used to analyze the data. The results revealed cybersecurity, customer relationship management, digital marketing, agile development, and user experience design as the most critical skills for the future. However, survey responses indicated doubts about the Nigerian insurance workforce's current possession of requisite digital skills and knowledge. There was also uncertainty regarding the adequacy of training investments and ability to attract/retain required talent. Hypothesis testing found a significant gap between perceived readiness of skills/knowledge versus training/talent factors. This study provides empirical evidence that the Nigerian insurance workforce requires urgent skills development and training investments to realize the benefits of digital transformation and close skills gaps. Addressing this digital skills imperative remains a strategic priority.